Listed firms double net earnings in Q1

Listed firms in the Philippine Stock Exchange (PSE) posted a combined net earning of P137 billion for the first quarter of 2010, or more than double compared to the same period last year. In a study released on Tuesday, the PSE said the earnings of listed firms expanded to P137.08 billion, or 113.9 percent more than the P64.08 billion earnings recorded in the same quarter in 2009.

The PSE is the country’s the only stock exchange with 250 listed companies and 132 operating trading participants. The PSE said the improved performances of all sectors accounted for the growth in net earnings, despite the declines posted by the hotel & leisure, oil, and telecommunications sub-sectors. “The first quarter results exhibited the strong recovery of our listed companies under a more favorable economic environment. On top of gains recorded from asset sales, companies also benefitted from increased demand and gains from foreign exchange operations and investments held during the first quarter," PSE Chief Operating Officer Val Antonio B. Suarez said. Consolidated revenues went up to P771.71 billion during the first quarter, or 28.8 percent higher than P599.28 billion earnings in the same period last year. Companies included in the PSE index likewise reported a 104.4 percent spike in their net earnings during the first quarter to P92.78 billion. Revenues also went up by 27.66 percent to P472.36 billion. Some 162 domestic companies recorded positive income figures in the first quarter of 2010 and only 60 companies posted net losses. For the subsectors, the combined net earnings of companies in the industrial sector surged 294.3 percent to P60.59 billion. This tremendous income growth was brought on by the First Philippine Holdings (FPH) Corporation’s sale of its shares in Manila Electric Co. (Meralco) worth P23.6 billion. Power generation assets acquired in 2009 generated a P7.5 billion income contribution to Aboitiz Power Corporation. San Miguel Brewery, Inc.’s (SMB) earnings were buoyed by its purchase in January of San Miguel Brewing International Limited, which pitched in an additional P2.99 billion to SMB’s earnings. The income of the affiliates of the listed companies propped up the holding firms’ net income by 187.9 percent in the first quarter to P33.6 billion. FPH drove up Benpres Holdings Corporation’s equity in net earnings of its associates to P10.56 billion in the first quarter, from only P115 million in the same quarter in 2009. Meanwhile, Aboitiz Power chipped in P5.68 billion to Aboitiz Equity Ventures, Inc’s revenues. A stronger peso lifted revenues of JG Summit Holdings Inc. as it booked foreign exchange gains of P1.32 billion during the period. On the other hand, the higher cost of sales and foreign exchange losses dragged earnings for the oil subsector by 41.4 percent. The service sector’s net income for the period was also relatively flat at 1.5 percent. The expansion in Banco de Oro Unibank Inc.’s loan portfolio brought about a 19 percent jump in its net interest income, boosting the financial sector’s earnings by 33.6 percent to P14.27 billion. Metropolitan Bank and Trust Co. also contributed to the subsector’s expansion as its operating income went up due to trading and foreign exchange transaction gains, among others. The combined net earnings of the property subsector grew by 18.4 percent to P8.02 billion largely due to realized profits from new projects completed in the first quarter. During the period, SM Development Corporation booked a gain of P6.2 million from the sale of investments held for trading and available-for-sale investments. These investments include securities and other financial investments intended to be held over the short-term and those that are held to maturity. –VVP/OMG, GMANews.TV